TaxTMI 
TaxTMI 
2017 (9) TMI 1857
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....g following grounds of appeal: "1. In the facts and circumstances of the case and in law, the Id. CIT (A) has erred in confirming the disallowance of the adhoc expenses amounting to INR 1, 70,322. The action of Id. CIT (A) is illegal, unjustified, arbitrary and against the facts of the case, Relief may please be granted by quashing the said disallowance. 2. In the facts and circumstances of the case and in law, the Id. CIT (A) has erred in confirming the disallowance of cash discount given to the customers amounting to INR 2, 00,000. 3. In the facts and circumstances of the case and in law, the Id. CIT (A) has erred in confirming the addition of Rs. 4,105 being physical cash, Rs. 9,562 being debtors and Rs. 32,063....
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....llowing heads have been made by the AO on the ground that supporting vouchers and other documentary evidence for these expenses could not be produced:- (i) Petrol, Depreciation on Car and Insurance - a disallowance of Rs. 20,000 out of the total expenses of Rs. 96650 has been made by the AO. Considering the fact that no controverting evidence could be filed by the appellant, the disallowance made by the AO is confirmed as being reasonable. (ii) Vehicle Repair and Maintenance - a disallowance of Rs. 9,000 out of the total expenses of Rs. 44,054 has been made by the AO. Considering the fact that no controverting evidence could be filed by the appellant, the disallowance made by the AO is confirmed. (iii) Wages - a d....
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....otal expenses of Rs. 1,13,009 has been made by the AO. Considering the fact that no controverting evidence could be filed by the appellant and the disallowance made by the AO being reasonable is confirmed. (ix) Shop Expenses - a disallowance of Rs. 1,300 out of the total expenses of Rs. 6,418 has been made by the AO. Considering the fact that no controverting evidence could be filed by the appellant, the disallowance made by the AO is confirmed. (x) Local Conveyance - a disallowance of Rs. 8,000 out of the total expenses of Rs. 37,880 has been made by the AO. Considering the fact that no controverting evidence could be filed by the appellant, the disallowance made by the AO is confirmed. (xi) Business promotion ex....
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....Mandi also. 8.6 In the absence of any such evidence and still considering the claim of the expenses being prevalent in this nature of trade, only a disallowance of Rs. 2 lacs was made by the AO out of the total expenses claimed under this head. The appellant has reiterated the submissions made before the AO and has stated that confirmation of four parties was also filed in the course of remand proceedings before the AO. AO in the remand report has stated that appellant has not maintained any person/firm wise and date wise details of discount given and also failed to produce any supporting vouchers for the amount of discount given to various persons. The appellant was unable to produce their books of accounts or other supporting doc....
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....ion of bank collection charges of Rs. 46,000 made an addition of Rs. 5,06,142 to the income of the appellant. 12.6 The appellant has stated that commission on gross basis accrues to the dealer @ 6% and in this case all the proceeds deposited in the bank account were on behalf of another party M/s Surendra & Co. A copy of the agreement duly executed with that party has been filed on record. It is stated that profit of 25% of the gross commission earned on sales @ 6% of sales, is earned by the appellant. It is submitted that out of gross commission - 6% of sales of Rs. 5,52,142, after meeting expenses a net profit of 25% of this commission amount which comes to 1,38,035, is the income of the appellant. The collection charges of bank ....
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....e contention of the ld AR that where income has been estimated after rejecting the books of account then no further disallowance is required to be made out of various expenses claimed in the P&L account. However, the facts of this case are completely different. The ld CIT(A) has sustained the net profit of 25% of the gross commission earned @ 6% on the sales which were not reflected in the assessee's books of account and these sales were made for the other Adathiyas. The ld. CIT(A) sustained net profit @ 25% of gross commission. The revenue is not in appeal on relief granted by the ld. CIT(A). In view of these facts, I find no reason but to agree with the order of the ld. CIT(A) for estimating net profit @ 25% of gross commission. Hence gro....